Regional gap in managerial pay

Regional
pay variation for managers is larger than that of manual staff, according to an
Office of National Statistics report.

The
report claims the difference occurs because employers base managerial salaries
on local house prices.

The
survey, published in Incomes Data Services’ Management Pay Review, shows
management salaries regionally differ by up to 50 per cent compared to 30 per
cent for manual employees. The average earnings of managers in large
organisations in the UK is nearly £113,000. But the average managerial pay in
London is almost £139,000, compared to Scottish managers who earn on average
less than £58,000.

The
IDS report says: “Rather than managerial pay running at similar levels across
most of the country while manual wages vary greatly, the reverse seems to be
the case.”

The
report claims regional differences are linked to employers setting managerial
pay based on the local cost of living, in particular house prices. IDS compared
regional managerial salaries to house prices and claimed “a remarkably close
fit”.